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Credit scores range from the low 300’s to the mid 800’s. There are three major credit bureaus and your most likely have a different score on each bureau based on their scoring model. So your score is in the low 600’s. You think, hey that’s not so bad…but a score of 600 is not good, it is considered a poor credit score. Your credit score directly affects your ability to obtain credit and the interest rates you may have on credit you are able to obtain. A better understanding of credit scores will help you; so let’s take a look at how credit scores are broken down. Excellent credit scores are considered to be from about 720 and up. Credit scores in this range will help you to secure the best interest rates and repayment terms for the loan. If you want to purchase a home or make other major purchases this score range is exactly where you want to be. Good credit scores fall in the range of 680-719. If your credit scores fall in this range, you should still be able to get decent interest rates and repayment terms. You should be able to refinance a mortgage at acceptable rates. Although you will not get offers as good as those offered to people with excellent credit. You should consider making some changes to improve your credit rating. Average credit scores range from 620-679. This score range is pretty much the minimum credit score to still get fair mortgage terms. Smaller purchases that require financing are doable, but you are below the good credit range and you would benefit from taking steps to improve your credit standing. Poor credit scores fall in the range of 580-619. You may be able to secure some loans at this score range; however, you will be getting them at the lenders terms. Expect to pay higher interest rates and larger down payments. You can rebuild your credit score from here by taking the necessary steps to improve your credit. Bad credit scores range from 500-579. If your credit scores fall within this range you will be paying big money for financing and you will find it very difficult and sometimes not even possible to secure financing. You need to take action to build a positive credit history. Miserable credit scores range 500 and below. A credit score in this range makes it nearly impossible to secure financing. It is time for action! You don’t have to live with bad credit. Call Step 1 Credit today for a free credit consultation and take the first step in building a better credit future.
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